Stakes still high for Egyptian billionaire's Telecom Italia deal

Naguib Sawaris, the Egyptian billionaire icon, still wants to buy a stake in Telecom Italia, as long as Telefonica, the company's biggest stakeholder is out of the picture.

Naguib Sawiris[2] says he is “still interested” in buying a stake in Telecom Italia[3] – but only if the telecom firm’s largest shareholder exits.

The Egyptian billionaire was rebuffed in late 2012 after making an initial approach to buy a stake in the Milan-based Telecom Italia.

Sawiris told Bloomberg that he is ready to invest in the company, but only if shareholder Telefonica[4] exits, and that the Italian telecoms firm does not sell its stake in the Brazilian carrier Tim Participacoes.[5]

The Madrid-based Telefonica has faced pressure in Brazil over “potential conflicts of interest in the country”, Bloomberg reported.

“I am still interested in Telecom Italia but only on two conditions: that Telefonica exits and that Telecom Italia does not sell Brazil,” Sawiris told Bloomberg.

“From a financial point of view, Telecom Italia still needs a massive 3 to 4 billion euros capital increase,” he added, although did not specify how much he is willing to invest.

Sawiris[6] is one of the richest people in Egypt, with his fortune estimated by Forbes at $2.7 billion.

He plans to invest $1 billion in Egypt in the first quarter of 2014, Reuters reported in December.